New IMO Rules Overshadow Hapag-Lloyd's Profit Outlook - CEO

Tougher rules on sulphur emissions from ships set by the
International Maritime Organisation (IMO) from January burden the
profit outlook for Germany's container shipping line Hapag-Lloyd
this year after a good 2019, its chief executive said.

"This will make it difficult for us to achieve a better (2020)
result," Rolf Habben Jansen told reporters in Hamburg in comments
on the ban on ships using a sulphur content above 0.5% on risk of
fines, which is shaking up oil and shipping.

But with above-market growth rates in transport volumes in 2019,
Hapag-Lloyd was on a good course with its profits to help offset
the extra costs from more expensive fuel and vessel refits, he
added.

The company, the world's fifth biggest container liner, will
report 2019 earnings on March 20.

It prepared early for the changes, including the staggered
introduction of a mechanism to pass on some additional costs for
IMO-compliant fuels to customers.

It also modernised its fleet through its purchase of Gulf peer
UASC, switching to more efficient vessels, and continues to
analyse all technological options to reduce emissions such as
scrubbers and switching to ships run on liquefied natural gas
(LNG).

Transport volumes probably grew by 1.5% in full year 2019
compared with an assumed moderate global industry growth rate of
around 1%, Habben Jansen also said.